Detailed explanation of Lazada’s local store operation strategies and advantages

As one of the largest e-commerce platforms in Southeast Asia, Lazada not only provides a wealth of sales channels, but also gives local stores many advantages. This article will introduce in detail the advantages of Lazada’s local store and its operation strategy in terms of logistics options, materials required for opening a store, promotion strategies, etc.

Logistics selection and store opening materials

Logistics options

Lazada local stores require that goods be shipped locally, otherwise it will be considered a violation. Large enterprises may choose to rent warehouses and cooperate with local logistics companies; while small sellers tend to cooperate with local distributors, storing goods at the distributor, and the distributor is responsible for shipping when customers place orders. In addition, more and more sellers choose to use overseas warehouse services, which can provide a variety of services including dropshipping, returns and label exchanges.

Materials needed to open a store

• Passport (you can use your passport to register except the Philippine site, which requires a local ID card or company business license)
• Local bank card (if you cannot handle it in person, you can use a third-party payment tool)

In the past, the lack of local bank cards was a major problem for many domestic merchants, but now this problem has been solved.

Advantages of local stores

Exposure and trust

Local stores can enhance sellers’ brand awareness on the Lazada platform and gain more opportunities for exclusive marketing activities.

Unlimited categories

Compared with cross-border stores, local stores can sell any legal products without worrying about being removed from the platform or fined.

Low commission fees

Local stores do not need to pay commissions and only need to bear freight and other service fees, which helps reduce costs.

Fast logistics time

Local stores can make use of local logistics resources to provide faster delivery services.

High ranking

Lazada gives priority to displaying products from local stores and provides more traffic support.

Short settlement cycle

Local stores enjoy more frequent and convenient settlement methods.

Promotion strategy

• Leverage local brand influence to increase exposure through traditional media and collaborations with celebrities.
• Create accounts on social media platforms such as Facebook and Instagram and post relevant content.
• Optimize search engine keywords and improve product search rankings.

Pricing methods and precautions

Pricing method

Many factors such as product cost, buyer payment fees, seller discounts, etc. need to be comprehensively considered.

Notes

• International shipping charges are based on weight.
• Encourage setting up free shipping options to increase store traffic and customer unit price.

Indonesian local store rules

Rules Overview

• Must have local phone number, bank card and business license or passport.
• Each seller is limited to opening one local store.
• Items must be shipped locally.

Product restrictions

Local stores have no restrictions on product categories.

The above information summarizes how Lazada local stores choose logistics, store opening materials, promotion strategies and various advantages. We hope to provide reference for merchants interested in opening Lazada local stores.